Benefits of Outsourcing Software Development
Benefits of Outsourcing Software Development

Benefits of outsourcing software development include saving money and time. Learn more in this article!

Companies that develop software understand the nature of this kind of process. To deliver quality products without compromising deadlines, it is necessary to rely on skilled and experienced professionals. They should have access to the most relevant techniques andtechnologies needed to complete the project.

Developing all this infrastructure is a complex endeavor. Besides the challenge of finding qualified professionals quickly, the costs related to this action can compromise the company's budget. This scenario explains the growing search for alternative paths.

Outsourcing software development is the solution found by many companies to overcome these obstacles and fill their staff with highly skilled developers. We can observe the increasing adoption of this approach in numbers. According to studies, revenue in the IT outsourcing segment is projected to reach US$108,748.6m in 2021.

Are you still not sure about the benefits of this type of arrangement? In this text, we will list and discuss the most important ones. Read on!

Access to a larger pool of talent

That is the first benefit of outsourcing. The moment you make this decision, your company breaks the boundaries of the internal talent market and gains access to professionals from many other countries.

It's no secret that the IT sector is one of the most affected by the talent shortage in the United States: research shows that 69% of US employers face difficulties filling job vacancies. Among these positions, software developers are among the 10 most difficult to fill.

By opening your horizons and choosing to outsource your development team, the number of candidates increases exponentially. Of course, quantity is different from quality, but accessing a larger talent base is already an essential step towards finding the person with the ideal skill set to fulfill your goals.

This is also fundamental for staying up to date with the tech world's most relevant techniques and technologies. Professionals with experience in international projects can add a lot of value to your team, even contributing to in-house members' evolution. This kind of cultural exchange is often invaluable.

Cost-effectiveness

Cost-effectiveness is one of the most relevant considerations for any investment in the IT sector. Therefore, when it comes to outsourcing development, one of the main advantages is the possibility of spending less without compromising the project's quality. It's no wonder that saving money is often the motivator cited by companies that invest in this strategy.

It is interesting to note that, to achieve the desired value for money, it is necessary to be careful with the pitfalls of outsourcing. Investing in over-saturated markets or countries lacking adequate professionals will endanger the whole project. This is why you should consider outsourcing to countries that are geographically closer to you.

This modality, known as nearshore, is exercised in regions such as LATAM. This means access to a large number of qualified professionals. Brazil, for example, boasts a huge population of java developers that you can reach through outsourcing companies. A middleman is important to avoid the risks of investing in developing countries.

This way, besides hiring top-level talent, you don't have to worry about their wages or labor expenses. These issues are handled by your partner, to whom you should pay only the amount stipulated for the service.

To top it all off, one has to consider the strength of the dollar against the Latin American currencies. The gap in exchange rates gives American companies extreme power of investment in this particular market.

Greater scalability

You are probably familiar with the challenges of scaling your development teams. Besides the difficulty of finding qualified developers at a reasonable cost, which we covered in the last topic, you have to do it quickly, since the software market is often based on tight deadlines.

In other words, besides interviewing and recruiting a new member, you need to develop the entire onboarding process and ensure that they have the necessary hard and soft skills to cause a positive impact on the project.

However, if you have a trusted partner, you can delegate all these tasks and welcome a well- trained professional.

Establishing such partnerships also helps in case you need to increase staff unexpectedly, either due to new demands or the departure of a team member.

Time Savings

With faster selection, recruitment, and onboarding processes, the result is significant savings in time. This allows you and your managers to focus on more relevant activities that have a greater impact on the final delivery. In addition, the outsourcing model brings the possibility to manage remote teams.

This is especially important in a post-pandemic context where, according to Global Workplace Analytics, at least 25-30% of the global workforce will work from home.

It eliminates the need for commuting and allows you to contact your teams and delegate tasks with great agility and convenience, wherever they are.

Here, it is vital to keep the timezone factor in mind. Outsourcing to distant countries, such as China and India, implies substantial time differences that can make communication difficult. Imagine arranging a meeting involving your in-house teams and professionals allocated in Beijing. Quite difficult, isn't it?

The situation is different in the nearshore model. Countries such as Mexico, Brazil, and Chile are situated in time zones that will not hinder the alignment of working hours. Also, of course, closer regions mean shorter flights, should you wish to hold face-to-face meetings or get to know your partner's structure better.

It is perfectly clear that outsourcing software development has the potential to take your organization to the next level, regardless of its size. That's right: both startups and giant companies can take advantage of this strategy. The model facilitates the scaling of teams and enables rapid, secure, and cost-effective growth.

Throughout the article we have mentioned the nearshore model, which focuses on countries that are geographically closer to the US. However, this is not the only outsourcing model. Learn more about all of them in this post!

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